What is the primary reason for offshoring?
A) To enter international markets
B) To lower operational costs
C) To gain international experience
D) To switch suppliers

Question

Quizplus · Accepted Answer

The primary reason for offshoring is to lower operational costs. Offshoring allows companies to take advantage of cheaper labor and production costs in other countries, which can lead to greater profitability. While entering international markets and gaining international experience may be secondary benefits of offshoring, they are not the primary reason for it. Switching suppliers may also be a secondary benefit, but it is not a primary reason for offshoring.

What Is the Primary Reason for Offshoring